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February has been a chilly month for direct-to-consumer brands. Birchbox laid off a quarter of its staff. Brandless shut down. Casper’s IPO has underwhelmed investors. And so on.
For Matt Sargent, senior vice president of retail at consulting firm Magid, a brand’s natural expansion from loyal customer base to a wider audience is filled with pitfalls. Along with moving too quickly, a leading danger is the potential for challenger brands to drop their narrative—the thing that drives customer loyalty—along the way.
“There
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